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India’s housing market appeals to NRIs while larger companies move to Tier II & III cities

The housing market went up 15 to 20 percent in NRI demand in the first nine months of 2022 compared to the same period last year

Larger homes have become a defining trend post-COVID. Despite the reopening of schools and offices, the desire for extra living space remains. SurangaLK/Shutterstock

The India Brand Equity Foundation noted that the real estate market is expected to reach USD9.3 billion by 2040. By 2030, India’s property sector is predicted to be worth USD1 trillion, and by 2025, it would have contributed 13 percent of the nation’s GDP.

The top three destinations for NRIs looking to buy a property in India are Hyderabad, NCR, and Bengaluru. This can be attributed to the buoyancy of the Indian real estate market and the depreciation of the rupee, reported Business Today.

The housing market went up 15 to 20 percent in NRI demand in the first nine months of 2022 compared to the same period last year.  

Moreover, larger homes have become a defining trend post-COVID. Despite the reopening of schools and offices, the desire for extra living space remains, and IT-driven start-ups and large companies are increasingly using hybrid work models.

Another prime motivator to purchase a bigger home for NRIs is the favourable exchange rate.

More: India sees surge in home sales, top cities include Mumbai and Bengaluru

Commercial real estate is recovering faster than ever now that the workforce is returning, according to The Times of India.

Leasing activity increased 97 percent YoY to reach 11.4 million square feet, indicating a solid rebound in the Indian office market.

Now, India’s real estate boom is concentrated in Tier II and III cities. These resource-rich communities have largely gone untouched for a long time. The government’s initiative to create 100 smart cities, the government’s ease in obtaining financing from banks and non-banking financial institutions for development projects, and the start of the pandemic all served as turning points for the expansion of these cities.

The distinction between metros and non-metros is eroding as we enter a new era of infrastructure growth as a result of digitalisation and the opportunity that tier II and III cities offer for economic growth.

Large firms and industries are disregarding traditional office leases and establishing their bases in Tier II and III cities as a result of India’s innovation boom in order to run their operations more profitably.

The Property Report editors wrote this article. For more information, email: [email protected].

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